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Evaluate these two options and recommend which one a health and fitness club, such as Fitness First, should adopt to reduce labour turnover - Edexcel - A-Level Business - Question 1 - 2017 - Paper 3
Question 1
Evaluate these two options and recommend which one a health and fitness club, such as Fitness First, should adopt to reduce labour turnover. Health and fitness club... show full transcript
Worked Solution & Example Answer:Evaluate these two options and recommend which one a health and fitness club, such as Fitness First, should adopt to reduce labour turnover - Edexcel - A-Level Business - Question 1 - 2017 - Paper 3
Step 1
Financial rewards
Answer
Financial rewards such as paying at least the Living Wage can help employees afford a reasonable standard of living. This approach satisfies their basic needs and is likely to improve retention. Such financial incentives can differentiate one employer from another. Employers who offer competitive pay are more likely to attract capable and skilled staff, which can enhance job satisfaction and reduce labour turnover.
Particularly, personal trainers, who often work on a commission basis, may find this especially significant as their compensation usually reflects their performance. If a club like Fitness First offers pensions or long-term benefits, it could provide a sense of job security. However, financial rewards alone might not be sufficient to reduce turnover, especially if employees feel that their roles lack progression.
Step 2
Non-financial techniques
Answer
Non-financial techniques such as support for further training and development can play a crucial role in employee retention. Offering opportunities for skill enhancement and career progression can instill a sense of belonging and loyalty among employees.
For instance, young, less-skilled support staff may be motivated more by career advancement opportunities than by pay. Creating an environment of recognition through awards and flexible working arrangements can support self-esteem and personal growth, which are significant factors in job satisfaction. Using both financial and non-financial techniques can yield a more holistic approach to retaining employees.
Step 3
Recommendation
Answer
In recommending a strategy for Fitness First, it’s critical to consider the type of workforce employed. For example, if the majority are young or less skilled, a non-financial approach may resonate more effectively, focusing on professional development and recognition.
However, for experienced trainers who rely on commission, a mixture of both financial compensation and recognition techniques would likely yield better retention results. Therefore, Fitness First should adopt a comprehensive strategy that combines both approaches, offering competitive financial rewards while also creating a supportive environment that encourages personal and professional growth.